Post on 31-Jan-2020
Journal of Australasian Mining History, Vol. 3, September 2005
171
Uranium in South Australia – Politics and Reality
By R. KEITH JOHNS
outh Australia has been in the forefront of developments in the Australian
uranium industry since the earliest discoveries were made almost a century ago
by prospectors A.J. Smith at Radium Hill in 19061 and W.B. Greenwood at
Mount Painter in 19102. The black, heavy refractory mineral, davidite, at the former and
rather more spectacular yellow and green torbernite and autunite (which were derived
from uraninite) at the latter, were mined for shipment overseas and for processing at
Woolwich (N.S.W.), Bairnsdale (Vic.) and on the northern outskirts of Adelaide.3
Figure 1: Showing uranium location sites, South Australia
To this time uranium was used as a pigment in glass and ceramics or dumped as
a waste product after its minute content of radium had been recovered. Radium, which
results from the natural decay of uranium, was used in medicine, cancer therapy and for
experimentation with radioactivity, following the pioneer work of Henri and Marie
S
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Curie in Paris. Thus, ores from Radium Hill and Mount Painter were worked
intermittently for the recovery of radium (as radium dibromide) by the Radium and
Rare Earths Treatment Company at Dry Creek; a plant was erected in 1923 and ceased
operations in 1932.4 Photograph 1: Bentley and ‘Smiler’ Greenwood at Radium Creek, 1919
Source: PIRSA, Division of Minerals and Energy, South Australia
Photograph 2: Radium and Rare Earths Co. Mine, Radium Hill, 1925
Source: PIRSA, Division of Minerals and Energy, South Australia
Uranium in South Australia – Politics and Reality
173
Uranium as a strategic military commodity
Unravelling the nature of the atom (of electrons, protons and neutrons) would lead to
development of the new science of nuclear physics during the period 1911 – 1939,
which culminated in the splitting of the uranium (U235) atom. Demonstration of a
controlled chain reaction through nuclear fission and the release of energy to generate
heat would lead to utilisation of a major new energy resource.5
The onset of World War II ensured that research, cloaked in secrecy, would be
directed to military purposes and the development of atomic weapons. In 1942 a
controlled nuclear chain reaction was achieved at the University of Chicago. The
Manhattan Project delivered the first nuclear explosion in the desert of Alamogordo
(New Mexico) in July 19456. The world would become aware of the awesome
destructive power of nuclear weapons when an atomic bomb was dropped on Hiroshima
on 6 August 1945 and, three days later, over Nagasaki.
The demand for uranium ore for munition purposes led to exploration by the
South Australian Government, for the UK and US defence programmes in 1944. The
work was undertaken by the SA Department of Mines. Initially, attention was paid to
the Mount Painter area where the deposits were tested by diamond drilling and through
excavation of exploratory adits. Camels were again used for transport of ore, westerly
over Radium Ridge and along a camel pad that terminated at Blue Mine Creek to
connect with the road to Copley, until construction of a track along East Painter Gorge
provided vehicular access.7
Exploration and development by the South Australian government, 1945-1962
As World War II came to an end SA Premier Tom Playford saw an opportunity to take
advantage of requirements for development of a new source of electrical energy that
might be generated in nuclear power plants overseas and, perhaps, locally.
Amendments were made to the SA Mining Act in 1945 to provide for the
control of mining, treatment and use of the ores of uranium and thorium and the vesting
of those minerals in the Crown. The SA Department of Mines directed attention to
assessment of mineralisation at Radium Hill in 1947 and laboratories were established
in Adelaide to provide supportive chemical, mineralogical, radiometric and
metallurgical requirements.8
In 1952 the Commonwealth and SA Governments signed a seven-year (cost-
plus) contract with the UK Atomic Energy Authority and the joint UK/USA Combined
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Development Agency. During the period 1954-1961 the SA Government operated the
Radium Hill mine; it produced 1 million tonnes of ore concentrate for chemical
treatment at Port Pirie (1955-1962) to yield 852 tonnes of uranium oxide (U3O8 –
yellow cake) valued at $36 million.9
Photograph 3: Radium Hill Mine, 1960
Source: PIRSA, Division of Minerals and Energy, South Australia Photograph 4: Uranium processing plant, Port Pirie, 1958
Source: PIRSA, Division of Minerals and Energy, South Australia
Meanwhile, prospectors and exploration teams were engaged in exploration
throughout Australia. The SA Government extended its search through conduct of air-
borne scintillation and ground surveys; sub-economic mineralisation was disclosed at
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175
Crocker’s Well, Mount Victoria, Houghton, Myponga and Port Lincoln. As contracts
were satisfied there was little prospect for further sales and exploration interest
dwindled. Work in this sector had virtually ceased by 1958 and the Uranium Section of
the SA Department of Mines was disbanded in 1961.
The Commonwealth Government had established the Australian Atomic Energy
Commission in 1953 to conduct research into a nuclear power reactor, nuclear
technology and application. A research reactor (HIFAR) has been operated at Lucas
Heights (NSW) since 1958 for research and production of radioactive pharmaceuticals
and isotopes for medical use and industry.
Nuclear tests at Maralinga
The British Government, with the agreement and support of the Australian
Government carried out nuclear tests at Emu Field and Maralinga during the period
1952-1963. Maralinga was developed as a jointly funded facility to become the
principal proving ground site for conduct of experiments in Australia.
Photograph 5: Nuclear weapons trial, One Tree, Maralinga, 1957
Source: ‘British Nuclear Testing’, http://comfuture.com/hew/Uk/UKTesting.html,
January 2005.
Following the two major trials (Operation Buffalo in 1956 and Operation
Antler in1957) a number of minor trials, assessment tests and experimental programmes
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(variously code-named Totem, One Tree, Marcoo, Kite, Breakaway, Tadje, Biak and
Taranaki), dating from 1959, were held at the range until 1963.10
The SA Department of Mines was involved with the establishment of
underground water supplies, the drilling of bores and maintenance of pumps; geological
surveys were undertaken, in the late 50’s and early 60’s, of construction aggregate and
clay in connection with the trials.
Uranium conversion and enrichment
Uranium in nature consists of two isotopes (U238 and U235) of which the U235 is more
important since this is the fissile isotope on which the chain reaction in a nuclear reactor
depends. By increasing the U235 content in the fuel (from naturally occurring 0.7 per
cent to approximately 3 per cent) it becomes more effective and economic; thus
enabling reactors to operate at higher temperatures and increased power – and to be
built in smaller more compact modules.
The enrichment process is based on the use of uranium hexafluoride (UF6) –
readily produced from U3O8, in its gas phase, and carried out commercially by physical
separation of the U235 isotope by the gaseous diffusion or the gas centrifuge processes.11
Proposals for construction of a uranium enrichment plant in Australia were first mooted
early in 1972 when a joint Australian /French (Government to Government) study was
undertaken, based on the French diffusion process. The preferred site was identified in
June 1972 on the shores of Spencer Gulf, South of Whyalla. A seawater desalination
plant to be built in conjunction with the enrichment facility was seen to convey a
significant benefit to the State. Initially, it was considered that energy requirements
would be supplied by gas from Palm Valley (NT). But by mid 1974, speculation
switched to favouring the use of Lake Phillipson coal deposits that had been identified
by Utah Development Co. as having large resources; a revised estimate of economics
based on that fuel was made.
The Whitlam Labour Government which came into office in late 1972 saw that
development of energy resources, including the further processing of its minerals, held
the key to Australia’s future prosperity. Their policy called for full Australian
ownership in uranium mining projects; foreign companies were denied opportunity to
participate in exploration and subsequent development; controls were placed on export
of strategic minerals and mineral products. The Government would explore for,
develop, process and market uranium through its agencies, viz. the Australian Atomic
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Energy Commission and a new enterprise, the Petroleum and Minerals Authority
(PMA).
The Commonwealth Minister for Minerals and Energy (Rex Connor) predicted
that the value of uranium would rise from $6/lb in early 1973, to $40/lb in 1977, and to
$100/lb in 1980. And he looked toward enrichment of uranium to quadruple the value
of Australian uranium resources, claiming in May 1974 ‘that it would be very close to
$30 billion - the biggest deal in Australia’s history’.12 Such plans took advantage of
studies being undertaken under the auspices of the Dunstan Government in South
Australia. In May 1974 an AMDEL report proposed that a centralised uranium
processing plant be sited on the shores of Northern Spencer Gulf, to be Australian
owned and operated, for the conversion of all yellowcake produced in Australian mines
to uranium hexafluoride. In February 1976, Premier Don Dunstan released a report
prepared by the SA Uranium Enrichment Committee, on uranium enrichment in South
Australia – to be established at Redcliffs by the Commonwealth Government but with
full State Government support and participation; it would utilise Urenco gas centrifuge
technology. Export sales of uranium from Australian mines were to be conditional on
enrichment of such sales in this plant; thus trebling the nominal value of the product,
put at $750 million per year. The proposed development was seen to be comparable
with the Snowy Mountains Hydro Electric Scheme in magnitude and long-term benefit
to Australia. Service industries to benefit included the conversion of yellowcake to
uranium hexafluoride and the manufacture of centrifuges (as an adjunct to the car
manufacturing industry). Permanent employment would have been provided to 1500
workers. Further site development in the future was seen to include nuclear power
generation and the desalination of seawater. The cost of the processing centre was put at
$1400 million. When the Minister of Mines, Hugh Hudson, travelled overseas in mid
1976 copies of this report were freely distributed in the UK, in Oslo, Vienna, Paris,
Rome, Ottawa and Washington.13
In July 1975 the Whitlam Government set up the Ranger Uranium
Environmental Enquiry (under Chairman, Justice Fox); its report of October 1976 gave
the green light to uranium mining, with appropriate safeguards. Minister Connor came
undone through the so called “loans affair”, when he sought to borrow development
funds from one Khemlani to circumvent the Loans Council – and he was dismissed
from office in October 1975. The High Court of Australia was to find (in June 1975)
that the formation of the Petroleum and Minerals Authority was invalid.
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With the return of a Liberal Government to office, the Federal Minister for
National Resources (Doug Anthony) in December 1975 established that their policy on
uranium was as for other minerals – it was a matter for private rather than for
Government development. The PMA was disbanded.
On 30 March 1977 the South Australian House of Assembly passed a motion
that ‘it has not yet been demonstrated to its satisfaction that it is safe to provide uranium
to a customer country, and unless and until it is so demonstrated, no mining or treatment
of uranium should occur in South Australia’. This SA Government Moratorium on
Mining legislation was passed by Parliament for the second time on 13 July 1978 when
it was discovered that the previous Bill was ‘flawed’.
A report of the SA Uranium Enrichment Committee in 1978 established that an
Urenco-Centec plant could be built by 1988 to take advantage of the predicted
expanded requirements of the industry at that time. When fully operational, the income
from sales of enriched uranium was put at $570 million per year (1978 dollars). But,
following a visit overseas to fully assess safety aspects of nuclear power generation for
himself, Premier Don Dunstan reaffirmed his ‘leave it in the ground’ policy in February
1979. He affirmed, however, that studies on an enrichment plant would continue.
Sedimentary uranium and in-situ leach recovery
Driven by the prospect of an increased international demand for uranium, a new phase
of exploration, dating from 1965, resulted in the discovery of sedimentary uranium
deposits – notably at Beverley (adjacent to Four Mile Creek, by Petromin NL, in 1969)
and near Honeymoon Hut (by Mt Isa Mines Ltd and Minad – Teton Australia, in 1971).
The uranium has been derived from the erosion of deposits (such as are exposed in
crystalline basement rocks at Mount Painter and in the Olary region), transported along
palaeochannels, and concentrated as finely divided coffinite and uraninite in Tertiary
sands. The ore-bodies are buried at depths ranging from 85m-145m and have no surface
expression in terms of landform, vegetation or surface radiometrics.14
Resources at Beverley amount to 21,000 t U3O8 and, at Honeymoon, in excess of
6,800 t; such deposits were seen to be of world class in terms of recoverability and
associated costs; their development would entail minimal environmental impact since
they are amenable to in-situ leaching. In this process, dilute acid is injected
underground through cased boreholes into the mineralised formation; the pregnant
liquor is withdrawn from recovery wells and pumped to a treatment plant for stripping
Uranium in South Australia – Politics and Reality
179
of the uranium content in ion-exchange columns; the barren liquor, containing radon
and radioactive daughter products, is returned underground. Thus, the mining of rock is
dispensed with and the accumulation of waste piles and tailings dams, which are
features of conventional mining operations, are eliminated. The simple chemical
processing obviates the breaking of rock, crushing, grinding, and flotation – and has
minimal impact on the underground water regime beyond the ore body.15 Photograph 6: Sir David Rivett, Thomas Playford, Ben Dickinson, Ben Chifley at
Mount Painter mine, 1947.
Source: PIRSA, Division of Minerals and Energy, South Australia
Photograph 7: Beverley uranium mine, in-situ leach recovery, 2004
Source: PIRSA, Division of Minerals and Energy, South Australia
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Olympic Dam – a champion mine shapes a ‘3-mines policy’
The Olympic Dam ore body, discovered by Western Mining Corporation in 1975, lies
hidden beneath 300m of sedimentary cover rocks. It has proven to be the world’s largest
known concentration of copper, uranium, gold and silver mineralisation – it contains 1.2
million tonnes of uranium oxide (40% of the world’s known uranium resources) and it
ranks among the world’s largest producers. Mining and processing operations
commenced in 1988. Such a bonanza might have been expected to enjoy bi-partisan
support in its development from the outset, but that was not to be the case.16
Photograph 8: Uranium oxide product, Olympic Dam Mine, 1988.
Source: PIRSA, Division of Minerals and Energy, South Australia
When the Tonkin Liberal Government came to office in South Australia in
September 1979, the Minister of Mines and Energy (Roger Goldsworthy) was quick to
establish that mineral development was to be the top priority. Their policy on uranium
development which was enunciated in Parliament in February 1980 extended to
conversion and enrichment in South Australia, including SA Government equity in such
projects, utilising Urenco-Centec technology; thus, to generate major new
manufacturing activity and enhancement of the export value of the product in helping to
Uranium in South Australia – Politics and Reality
181
satisfy the increasing nuclear power demand from overseas. Sales of enriched uranium
were expected to earn $600 million per year at that time. The cost of a conversion plant
at Port Pirie was put at $80 million; an $800 million enrichment plant could be expected
to start operations in the late 1980’s.17
Photograph 9: Honeymoon uranium recovery pilot plant, 1983.
Source: PIRSA, Division of Minerals and Energy, South Australia
Meanwhile, the policy adopted by the ALP provided for closure of all uranium
mines and to repudiate, without compensation, any existing contracts. John Bannon, as
Leader of the Opposition in SA scorned the Olympic Dam Project, describing it as ‘pie
in the sky’ in November 1981 – it was seen to be a mirage in the desert18. An Indenture
to provide for mine development was enacted only when one of the Opposition crossed
the floor in the Legislative Council and voted with the Government in June 1982. As
proposals to mine at Olympic Dam loomed as a major issue in the forthcoming State
elections, the ALP uranium policy was modified.
Denial of a production tenement to develop the Honeymoon deposit, despite
successful pilot tests and the construction of a processing plant, was made by the
ensuing Bannon Government in March 1983. The Beverley joint-venturers were,
likewise, stalled. Ostensibly, the decision was based on concerns that there were
unresolved problems associated with the nuclear industry; further, that there should be
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no impediment to Olympic Dam becoming economically viable; and, disquiet about in-
situ leaching as an experimental process. The ‘reasoning’ was fatuous and hypocritical
in the extreme with regard to the distinction drawn between them and Olympic Dam;
the one was ‘safe’ to mine and sell because uranium occurred together with other
minerals – the other not.
Ideology gave way to expediency as ‘the three mines’ uranium policy was
adopted by the ALP in November 1983 to accommodate Olympic Dam (together with
existing mines in the Northern Territory –Nabarlek and Ranger). Part of the quid pro
quo was the prohibition of the establishment of nuclear power plants and other stages of
the nuclear fuel cycle.
The newly elected Hawke Federal Government, at the same time, withdrew
support for UEGA (the Uranium Enrichment Group of Australia) by denying access to
classified technology exchange and Government support on International Atomic
Energy Agency commitments. UEGA had been established in early 1980 and comprised
representatives of BHP, CSR, Peko-Wallsend and WMC. The enrichment opportunity
which was destined to have more than trebled the value of Australian uranium exports
was finally lost to construction of a similar plant in Louisiana (USA).19
A national low-level radioactive waste repository
A study was initiated in September 1991 for identification of a central site to provide a
repository for the nation’s low-level radioactive waste – geological integrity was seen to
be a key requirement; a discussion paper was released to the State Governments by the
Commonwealth Minister for Primary Industry and Energy (Simon Crean). Low-level
waste consisting of contaminated soil, clothing, laboratory equipment, radiation sources
and other items arising from research, medical and industrial use of radionuclides and
amounting to 3,700m3 have accumulated during the past 55 years; a further 40m3 are
being generated annually. In South Australia alone, there are 19 locations in
metropolitan Adelaide and seven in country towns where such radioactive waste is held
– additional to 2,500 tonnes that were consigned to Woomera for storage by the Keating
Government.20
The issue was taken up by the Federal Howard Government in 2000 when the
preferred site for such a facility was identified as being on Arcoona, near Woomera –
but their proposals have been thwarted by the South Australian Rann Government,
Uranium in South Australia – Politics and Reality
183
which has chosen to ignore the advantages and political leverage that might have been
extracted by way of compensation, infrastructure requirements and levies for usage.
The 2000 position – and outlook
No element has had such an impact on civilisation as has uranium. In the space of 100
years it has emerged from obscurity to become universally recognised as of wide
medical and industrial benefit, dreaded as a weapon of potential mass destruction, and is
utilised as a source of electrical energy.
The first nuclear power station to be connected to a public electricity grid was a
50 MW reactor at Calder Hall (England) in 1956. Fifty years later there are 440
commercial nuclear reactors operating in 31 countries (with over 360,000 MW of total
capacity), supplying 16 per cent of the world’s electricity as base-load power; a further
30 reactors are under construction in 11 countries, while 284 research reactors operate
in 56 countries (including Australia)21. To meet their fuel requirements, about 70,000
tonnes of uranium are consumed annually. The demand is likely to increase in the
future, it being argued by some that this is the most significant means of limiting
anthropogenic ‘greenhouse’ gas emissions that are seen to influence global climate
change.
South Australia is recognised, geologically, as a uranium province; it has a 100
years’ history of uranium mining and processing. Despite turning down opportunities
presented for involvement in other phases of the nuclear fuel cycle, the Government is
supportive of proposals under consideration for expansion of output from Olympic
Dam. In-situ leach recovery of uranium was initiated at Beverley in 2001. Despite the
fact that the ALP’s ‘3 mine policy’ still pertains, this State is obviously well placed to
take advantage of perceived future international growth of the nuclear power industry.
Endnotes 1 D. Mawson, ‘On certain mineral species associated with carnotite in the radioactive ore body near Olary’, Transactions of the Royal Society of South Australia, 30, 1906, pp. 188-193 2 L.C.E. Gee, The occurrence of uranium (radioactive) ores and other rare metals and minerals, South Australia, Government Printer, Adelaide, 1911. 3 B. Campana and D. King, ‘Regional geology and mineral resources of the Olary Province’, Bulletin of the Geological Survey of South Australia, 34, 1958. 4 R.P. Coats and A.H. Blissett, Regional and Economic Geology of the Mount Painter Province, 1971, Bulletin of the Geological Survey of South Australia, 43, 1971.
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5 Uranium: the energy mineral, 1789 – 1989, pamphlet published by The Uranium Institute, London, 1990. 6 S. Cockburn and D. Ellyard, Oliphant: the life and times of Sir Mark Oliphant, Axiom, 1981. 7 S.B. Dickinson, ‘South Australian interests in uranium and atomic energy’, Symposium – Atomic Energy in South Australia, N.S.W. University of Technology, 1954. 8 Radium Hill, reprinted from Atomic Energy (Australian Atomic Energy Commission), January 1962. 9 R. K. Johns, ‘Uranium exploration in South Australia’, in AustIMM Monograph Series, no. 17, 1990, pp 495–498. 10 ‘British Nuclear Testing’, http://comfuture.com/hew/Uk/UKTesting.html, January 2005. 11 Gaseous diffusion process: relying on the difference in the rate at which the hexafluoride’s of U238 and U235 diffuse through a porous membrane – U235 molecules being smaller are able to pass through fine openings more readily. The operation is repeated in over 1000 diffusion stages under high compression to effect appropriate concentration. Such plants are physically large and have high electricity consumption; this technology may be regarded as obsolete. Gas centrifuge process: pioneered by a British/Dutch/German consortium (Urenco), is also based on uranium hexafluoride gas which is fed into rapidly rotating centrifuges which spin the gas at high speed, causing the heavier U238 to settle near the walls of the machines and the lighter U235 near the centre. By counter-current repetition, through an interconnected series of centrifuges, a cascade affects the required degree of enrichment. 12 A. Cawte, Atomic Australia, 1944 – 1990, NSW University Press, 1992. 13 South Australia: Uranium Enrichment, Second interim report of the Uranium Enrichment Committee, Premier’s Department, Adelaide, February, 1976. 14 J.L. Curtis, D.A. Brunt and P.J. Binks, ‘Tertiary palaeochannel uranium deposits of South Australia’, in AustIMM Monograph Series, no. 14, vol. 2, 1990, pp. 1631–36. 15 S.R. Howles, ‘Beverley uranium project – groundwater resources, management and monitoring’, MESA Journal 17, April 2000, pp. 4–6. 16 N.C. Shierlaw, ‘Roxby Downs and uranium – the key to South Australia’s future’, Adelaide Advertiser, 17 January 1979. 17 ‘Go ahead for nuclear enrichment industry’, The Australian, 1 December 1981. 18 Mike Rann, ‘Uranium: Play it safe’, for the ALP (SA) Nuclear Hazard Committee, Labor Forum, vol. 4, no.1, March 1982. 19 Mineral Industry Quarterly, no. 32, December 1983, SA Department of Mines and Energy. 20 Adelaide Advertiser, 11 February 2003. 21 ‘Nuclear Power in the World Today’, Nuclear Issues Briefing Paper no.7, World Nuclear Association, London, October 2003.